{"id":8945,"date":"2022-07-27T06:38:42","date_gmt":"2022-07-27T06:38:42","guid":{"rendered":"https:\/\/depocen.org\/publications\/optimal-risk-sharing-under-limited-commitmentevidence-from-rural-vietnam\/"},"modified":"2022-07-27T06:38:42","modified_gmt":"2022-07-27T06:38:42","slug":"optimal-risk-sharing-under-limited-commitmentevidence-from-rural-vietnam","status":"publish","type":"publications","link":"https:\/\/depocen.org\/en\/publications\/optimal-risk-sharing-under-limited-commitmentevidence-from-rural-vietnam\/","title":{"rendered":"Optimal Risk Sharing Under Limited Commitment:\r\nEvidence From Rural Vietnam"},"content":{"rendered":"<p>We use panel data from a household survey conducted in Vietnam to analyze the effectiveness<br \/>\nof informal risk sharing arrangements in protecting household consumption from idiosyncratic<br \/>\nincome shocks. We focus on the effects of reported harvest shocks and of estimated shocks to<br \/>\nagricultural revenues on adult equivalent consumption. The full-insurance allocation is tested<br \/>\nagainst a specified alternative under which contracts are not fully enforceable ex-post. We find<br \/>\nthat farmers hit by unfavorable events stabilize their consumption level below the village aggregate<br \/>\nlevel, irrespective of the level of realized shocks. At the same time, farmers experiencing<br \/>\nmore favorable shocks enjoy higher consumption in proportion to the realized value of idiosyncratic<br \/>\nshocks. Together, these finding are consistent with a simple 2-period model of optimal<br \/>\nrisk sharing with one-sided limited commitment. These results hold for total consumption and<br \/>\nfor non-durable consumption. We also find however some evidence supporting the full insurance<br \/>\nhypothesis for food consumption.<\/p>\n","protected":false},"featured_media":0,"template":"","cate_publications":[],"author_publications":[1708,1709],"topic_publications":[],"class_list":["post-8945","publications","type-publications","status-publish","hentry","author_publications-patrick-eozenou","author_publications-patrick-eozenou-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/depocen.org\/en\/wp-json\/wp\/v2\/publications\/8945","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/depocen.org\/en\/wp-json\/wp\/v2\/publications"}],"about":[{"href":"https:\/\/depocen.org\/en\/wp-json\/wp\/v2\/types\/publications"}],"wp:attachment":[{"href":"https:\/\/depocen.org\/en\/wp-json\/wp\/v2\/media?parent=8945"}],"wp:term":[{"taxonomy":"cate_publications","embeddable":true,"href":"https:\/\/depocen.org\/en\/wp-json\/wp\/v2\/cate_publications?post=8945"},{"taxonomy":"author_publications","embeddable":true,"href":"https:\/\/depocen.org\/en\/wp-json\/wp\/v2\/author_publications?post=8945"},{"taxonomy":"topic_publications","embeddable":true,"href":"https:\/\/depocen.org\/en\/wp-json\/wp\/v2\/topic_publications?post=8945"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}